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tvm 5 day hogan

# tvm 5 day hogan - Lecture Problem Solutions Time Value of...

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Unformatted text preview: Lecture Problem Solutions Time Value of Money Day 5 I. ] Scream Ice Cream Company is analyzing several of its upcoming ﬂavors. What is the value of peanut chocolate crunch if the discount rate is 6.2 percent and the ﬂavor is expected to generate ﬁxed cash ﬂows forever with the ﬁrst cash ﬂow of \$100,000 in 4 years? 1" A. ‘riﬁ‘r gang; “5L; ‘FlI-J‘ a. .n '{I'G-Uﬂr ﬂa'r rﬂr ll. ac. lam-a m: Imus-l- use TL: "cranky (gawk. TL“. 1031* CF 1‘: 3. rue! ‘lf ;. flu {Para-lulu fall-5 u: '1“: til.“— 3‘: flat refrih‘lﬂ 14 far 3'_ Ll: 'l'l—II-I~ liken-J? TL'vt “like. he year? 1-- C: ?'a 1 organs 21'» —_———_ H ———__—-——' R: i 1'" (”HP (”in 06.2211 [amnion «- ___._—-I- 0.961 =l‘clzag53snczl 2. What is the value of nougat swirl if the cost of capital is '12 percent and the ﬂavor is expected to generate cash flows forever with the ﬁrst cash flow of \$90,000 in 5 years and all subsequent cash ﬂows growing annual] by 1.5 percent? 1's q“ /; 'Sl'ug gallk 1C4...” JM gf'suif' qt “HI-t {Inn-u. 4 rel-II .u. Lem.) “h uh. Til-a... tin-Ila} ("f‘hh'f 6- (.ramln_ (slid-n flaw. ‘Fiﬁ'f ﬂil‘ aid 4* (’5, THAI-null. Hli B! m 1»).th all? f." “l. Ll; ”3 "97' Thu Jlicm-ud‘ rlu+ at“ “(l-‘1 Wu t-o_ " ‘félll‘lolzzc [5433111 .31 (Itcho‘rﬁyl ‘lo,oao 0-011-0-“5 = *I‘S‘iiﬁ‘ll res 3. I Scream Ice Cream Company is analyzing several of its upcoming flavors. What is the value of coffee toffee if the Opportunity cost of capital is 3.0 percent and the ﬂavor is expected to generate ﬁxed cash flows of \$250,000 with the ﬁrst cash ﬂow in 6 years and the last cash ﬂow in 4' '____.---? U- 1 \$ 3! d; Eat-II- fdi'iI-ltt. curl- ‘Pl.a‘ flun- lﬂw. ’0 an Alf-“f M at Lu". .a auﬂuifﬁ ‘t SAIL»; gm" w fills at 144-!- UlllH-i. ‘1' t" S (Uiiﬂa END '4'). l-ie 145-!“ 14..., fu ‘1- 1-in- 5 «J chick-f :+ +- ﬂame «in .t f-O. u MT F“ rm. kl I in) WT Eu m). :3 £0 1'? 250m 0 END S" 3-0 7 O (56521.13 -" W = 15:; 53121 . '1'-?E‘ FU- \$106 great 72? 4. What is the expected annual cash flow generated by peanut butter passion if the project has a cost of capital of5%, is currently valued at \$1.3 Million and is expected to pay 10 equal annual cash flows with the ﬁrst cash ﬂow 4 years from today? +\$ Egg-1. P.’ I. I. 'l 1‘. Qinl fin-n... l‘Yﬂﬁf a; fLi. «nay! (,3: HM‘H’ L‘s-Hf“.- Iﬂlku. ‘+ 1'”: 3 lid-Hit qr {we‘ve ‘H'H- ‘Fiﬂf fﬁfﬂ‘a- Shau- ‘ucu 2” 1" 1‘0] use cat... use F's W=l.%ﬂ r: we. 1" a 1- G: Wa- {-3 +11"... 1L. want Id I: W 'r'HT w m... IQ 1: W ?HT Fv mi: ‘3 sedate0W ‘5 - - 1 49:51.1on e}?— *2108'5325 W ...
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